Africa as the 'Last Frontier' - Presentation by Kingsley Moghalu, Deputy Governor of the Central Bank of Nigeria.

Moghalu defines "the last frontier" as being a twofold vision of the continent characterizing both internal and international economic dynamics "from the perspective of the expansion of the world economy to new poles of economic growth and transformation." Indeed, as a result of the rise of Brazil, Russia, India, China, and South Africa (BRICS) in recent years, analysts and observers have come to see Africa as the next potentially "prosperous part of the world." BRICS countries are now wealthy enough to outsource production and manufacturing to less developed economies. This has catalyzed hope that the spheres of economic growth and prosperity will extend to more African nations. Optimism is pervasive as annual growth rates have ticked upward on the continent since the dawn of the new millennium. Foreign Direct Investment (FDI) has never been higher. In response to the rising costs of labor in Southeast Asia, Western investors have started pivoting to Africa. The fruits of economic globalization have come to the continent.

Moghalu nevertheless challenged policymakers to be prudent with regard to large capital inflows. "When you look at Africa as a new territory for conquest for business opportunities, the question then becomes: in whose interest?" Markets and investors driven by profit have proven risky if left unchecked, as experienced during the 2007-2008 global financial crisis. Africa has a growing consumer middle-class, but Africans have not yet become producers and may be deterred from doing so if FDI crowds out regional investments.